USD/CHF Forex Signal - 25 June 2019

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USDCHF Analysis: Strong Franc making new multi-month highs

Yesterday’s signals were not triggered as none of the key levels were reached within the specified time period.

Today’s USD/CHF Signals

Risk 0.75%.

Trades may only be taken before 5pm London time today.

Short Trade

  • Go short following a bearish price action reversal upon the next touch of 0.9793.

  • Place the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Long Trades

  • Go long following a bullish price action reversal upon the next touch of 0.9664, 0.9637, or 0.9626.

  • Place the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

USD/CHF Analysis

I wrote yesterday that the Swiss Franc had the greatest long-term strength of any major currency, so shorting this currency pair seemed to have the odds in favour of it now. Bears should be aware that this pair in recent years has tended to snap back strongly and suddenly against emerging major trends, so be careful shorting this.

I was ready to take a bearish bias today if we get a bearish failure at any key resistance level.

This was a good call insofar as it correctly identified yesterday’s direction, but it was too cautious to be very useful.

The price remains extremely weak and in a strong bearish trend, with this pair actually at the heart of the Forex market right now. However, the price has finally touched a very supportive zone between roughly 0.9700 and 0.9600 where there are several key support levels due to congested price action when the price was last here many months ago. This means that bears may find it very hard to push the price down much further below here and that it would not be a surprise if we got a medium or even long-term bullish reversal in this area – it is a pivotal area.

I take no bias, but I think it is quite likely we will see at least 0.9665 reached today.USDCHFThere is nothing of high importance due today regarding the CHF. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time, followed by a speech on monetary policy from the Chair of the Federal Reserve at 6pm.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
Learn more from Adam in his free lessons at FX Academy.